Tech Stocks Plunge as Investors Question AI Boom

On November 14th, 2025, Wall Street is experiencing a significant downturn as investors grow increasingly wary of the AI-driven stock market gains. All three major indexes - the Dow, Nasdaq, and S&P 500 - have recorded steep losses by midday trading, with only the Volatility Index (VIX), also known as the "fear index," showing a nearly 20% increase.

The VIX measures how volatile investors expect the stock market to be over the next 30 days, based on options prices for the S&P 500. The sharp rise in the index indicates that Wall Street remains on edge as questions about the sustainability of AI-driven gains creep into the market. Among the skeptics is Michael Burry, the investor who predicted the 2008 financial crash, who has now made a huge bet that Nvidia's share price will fall.

Adding to the concerns, Masayoshi Son, a prominent tech investor, has quietly sold off all his Nvidia shares and most of his stake in T-Mobile last month, a move that is being interpreted as a warning sign that the AI boom may be losing steam. As a result, tech stocks have been hit the hardest, with giants like Nvidia, Broadcom, and Google-parent Alphabet leading the decline.

However, not everyone is panicking about the tech rout. Some analysts believe the slump is simply a natural consolidation after months of AI-fueled mania, with one expert calling the pullback "healthy" and suggesting that the capital expenditure in the sector will eventually manifest itself.